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Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Cash Flow Hedges
Our cash flow hedges include foreign currency forward contracts, commodity swaps and commodity purchase contracts. We use foreign currency forward contracts to manage currency risk associated with certain transactions, specifically forecasted sales and purchases made in foreign currencies. Our foreign currency contracts hedge forecasted transactions through 2025. We use commodity derivatives, such as fixed-price purchase commitments and swaps to hedge against potentially unfavorable price changes for items used in production. Our commodity contracts hedge forecasted transactions through 2023.
Derivative Instruments Not Receiving Hedge Accounting Treatment
We have entered into agreements to purchase and sell aluminum to address long-term strategic sourcing objectives and non-U.S. business requirements. These agreements are derivative instruments for accounting purposes. The quantities of aluminum in these agreements offset and are priced at prevailing market prices. We also hold certain foreign currency forward contracts which do not qualify for hedge accounting treatment.
Notional Amounts and Fair Values
The notional amounts and fair values of derivative instruments in the Condensed Consolidated Statements of Financial Position were as follows:
  
Notional amounts (1)
Other assets
Accrued liabilities
  
March 31
2020

December 31
2019

March 31
2020

December 31
2019

March 31
2020

December 31
2019

Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign exchange contracts

$3,399


$2,590


$5


$29


($285
)

($60
)
Commodity contracts
503

645

2

4

(163
)
(72
)
Derivatives not receiving hedge accounting treatment:
 
 
 
 
 
 
Foreign exchange contracts
181

285

4

1

(2
)
(6
)
Commodity contracts
583

1,644





 
 
Total derivatives

$4,666


$5,164


$11


$34


($450
)

($138
)
Netting arrangements
 
 
(9
)
(20
)
9

20

Net recorded balance
 
 

$2


$14


($441
)

($118
)
(1) 
Notional amounts represent the gross contract/notional amount of the derivatives outstanding.
Gains/(losses) associated with our hedging transactions and forward points recognized in Other comprehensive income are presented in the following table: 
 
Three months ended March 31
  
2020

 
2019

Recognized in Other comprehensive income, net of taxes:
 
 
 
Foreign exchange contracts

($197
)
 

$22

Commodity contracts
(78
)
 
(11
)

Gains/(losses) associated with our hedging transactions and forward points reclassified from AOCI to earnings are presented in the following table:
 
Three months ended March 31
 
2020

 
2019

Foreign exchange contracts
 
 
 
Revenues

($1
)
 

$5

Costs and expenses
(1
)
 
(5
)
General and administrative

 
1

Commodity contracts
 
 
 
Costs and expenses
(1
)
 
1

General and administrative expense

 
1


Gains related to undesignated derivatives on foreign exchange cash flow hedging transactions recognized in Other income, net were $5 and $2 for the three months ended March 31, 2020 and 2019.
Based on our portfolio of cash flow hedges, we expect to reclassify losses of $42 (pre-tax) out of Accumulated other comprehensive loss into earnings during the next 12 months.
We have derivative instruments with credit-risk-related contingent features. For foreign exchange contracts with original maturities of at least five years, our derivative counterparties could require settlement if we default on our five-year credit facility. For certain commodity contracts, our counterparties could require collateral posted in an amount determined by our credit ratings. The fair value of foreign exchange and commodity contracts that have credit-risk-related contingent features that are in a net liability position at March 31, 2020 was $111. At March 31, 2020, there was no collateral posted related to our derivatives.